Are extended warranties from various companies worth it?

A:

Quick Answer

Extended warranties are usually not worth it. Consumers Reports and most consumer advocates recommend against purchasing extended warranties. Manufacturers' warranties cover most items for at least 90 days, and sometimes manufacturers pay for repairs even after the warranty period ends under certain circumstances.

Most extended warranties include specific terms and exceptions, making it easy for claims to be denied. New items are unlikely to break during the term of the extended warranty, and if they do, the cost of repair is similar to the cost of the extended warranty. Many credit cards double the length of the manufacturer's warranty at no cost, so consumers who purchase items with such a credit card receive an automatic extended warranty without having to purchase one.